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Experts and industry groups are increasingly voicing opposition to a proposed tax on financial transactions in Europe. Noel Amenc, an EDHEC Business School professor, told EU Internal Market Commissioner Michel Barnier in a letter that the tax would increase the price of capital. "The theoretical arguments in support of [financial-transaction tax] as a measure to reduce volatility are, at best, mixed," Amenc wrote.

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The European Commission is expected today to propose a new financial-transaction tax plan, prompting opposition from the U.S. Treasury. "We do not support the proposed European financial transaction tax, because it would harm U.S. investors in the U.S. and elsewhere who have purchased affected securities," a Treasury spokeswoman said in an e-mail. SIFMA and other trade associations argue that a proposed tax on financial transactions in Europe ignores international treaties, overreaches and would hurt the global economy. Learn more at SIFMA's Transaction Tax Resource Center.

Experts and industry groups are increasingly voicing opposition to a proposed tax on financial transactions in Europe. Noel Amenc, an EDHEC Business School professor, told EU Internal Market Commissioner Michel Barnier in a letter that the tax would increase the price of capital. "The theoretical arguments in support of [financial-transaction tax] as a measure to reduce volatility are, at best, mixed," Amenc wrote. The European Commission is scheduled to present a plan Feb. 14.

EU Internal Market Commissioner Michel Barnier has written European Parliament members to urge them not to block over-the-counter derivatives rules. Lawmakers have said they are hesitant to adopt such rules, saying they could hurt businesses. Barnier says rejecting the rules could harm the EU's credibility and competitiveness.

Michel Barnier, the EU's internal-market commissioner, has reiterated a need for the U.S. and other nations to adopt Basel III rules. The U.S. delayed Basel II and did not pass it into law until years after Europe had introduced it. As it stands, 11 of the Group of 20 countries have introduced Basel III.

Phillip Inman argues that a tax on financial transactions in Europe is a solid idea but that this isn't the time. "When the good times come back, the argument for throwing some sand in the wheels of the money markets is a sound one," Inman writes. "In the meantime, however, the [financial-transaction tax] should be placed on the back burner. Politicians need to focus on one project at a time."